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Stress testing in a SII environment

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How to use these data<br />

• The data enable a high level monitor<strong>in</strong>g of vulnerabilities <strong>in</strong> the <strong>in</strong>surance sector.<br />

Organis<strong>in</strong>g this <strong>in</strong>formation <strong>in</strong> a dashboard will help visualise the strength and<br />

weaknesses and potential risks ahead.<br />

• The analysis should be done on a regular basis.<br />

• Both levels and trends are of <strong>in</strong>terest.<br />

• Such a dashboard is a stand-alone tool but can serve as a useful <strong>in</strong>put or<br />

complement to a stress test exercise, by help<strong>in</strong>g identify scenarios and <strong>in</strong>terpret<strong>in</strong>g<br />

results. At the same type, it provides useful checks on <strong>in</strong>surers’ own stress test<br />

assumptions.<br />

• A useful, publicly available, example for such analysis are the quarterly risk<br />

dashboards by EIOPA.<br />

INTERNATIONAL MONETARY FUND 17

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